Toughened Big-Bank Merger Reviews Pose Threat to Upstart Rivals

Putting extra scrutiny on big bank mergers involving more than $100 billion in assets has the potential to increase industry concentration and derail Biden administration plans to promote competition, banks and others told the FDIC.

The Federal Deposit Insurance Corp. sent out a comprehensive information request in March on potential changes to its merger review process. The effort—along with a Justice Department review of its bank merger approval process—is an outgrowth of President Joe Biden’s 2021 executive order calling for federal agencies to increase competition in the U.S. economy.

Questions about whether bank deals involving at least $100 billion in ...